6 Ways Philanthropy Is More Conducive for the Economy

Philanthropy, when considering business, is the process of caring more for humanity than profit. Although many philanthropists don’t share the same success as hard core capitalists, these individuals could be more conducive to maintaining the economy and even the future of economic growth. People such as Ehsan Bayat have made a great deal of success for themselves while helping humanity develop in many areas, which includes providing technology for locations that don’t have 21st century tools.

Improving Local Lifestyles

By improving the lifestyles of the local populace, you can encourage economic growth. Philanthropists help people get the tools and knowledge necessary to enhance their way of life. An example of this would be to establish mobile phone service in an area where there is none at an affordable rate. As communication is vastly important in today’s society, this kind of a platform is greatly beneficial for social growth.

Job Creation for Sustainability

As philanthropy is not governed by profit, more of the business income is used to improve wages and benefits for employees. Additional jobs can be created putting more money into circulation of the populace. This allows those individuals to pay for other goods and services within the community. If more CEOs would reduce their incomes by even 10 percent, many more employees could be hired for various jobs.

Charitable Programs

Philanthropists are often more likely to establish charity programs using the profits from their own businesses. Many of these programs help the less fortunate get back on their feet. This allows those that had no future prospects to put effort into becoming self-sustaining and productive. Once an individual can maintain a job, more money is spent by him or her within the community.

Social Infrastructure

While charity programs can help people become stable, social infrastructure also needs to be addressed. In many communities, the lack of health clinics and education prevent individual advancement and health. Many philanthropists go out of their way to incorporate more of these facilities for the improvement of humankind. This is then reflected by a healthier workforce which encourages financial growth.

Entrepreneurial Investments

Many philanthropists invest in small local businesses rather than play the stock market. Not only does this help the local community develop jobs, but it puts more of a personal connection within the project. From small, single-person businesses to larger multiple-employee establishments, a philanthropist with an entrepreneurial outlook could help cultivate a community and strengthen its economy.

Helping with Products for the Home

There are many ways that a philanthropist can help the economy while still creating a good income. In many situations, this individual will devise ways to bring technology and other benefits to low-income areas while slashing prices. For instance, there are many organizations that will allow consumers to rent a product with the option to buy it later. Instead of requiring the $900 to buy a new refrigerator, there could be low monthly payments of $40 for two years. This can be greatly beneficial for those that are in an emergency should a fridge break down. A lot of rental companies use this model but modify it to suit a more capitalistic nature.

Philanthropists strive to offer a better way of life for the community. In a business sense, these owners would rather employees have a stable way of life than to buy an extravagant mansion for themselves. Although many capitalists offer great benefits to employees, most of them are driven by profit and not sustainability of the human species. It is possible to make a good living as a philanthropist while providing the necessities that communities need in order to thrive.